New York/ London, Apr 7 (ANI/Business Wire India): WNS (Holdings) Limited, a leading provider of global business process outsourcing (BPO) services, today announced it has acquired Call 24/7 Ltd., an auto insurance-claims-processing services provider in the United Kingdom.
WNS has acquired all shares of Chang Limited, the Stockport, Cheshire-based holding company in which Call 24/7 is the key operating entity, pursuant to a definitive agreement with the former shareholders of Chang Limited.
Under the terms of the deal, total consideration for the acquisition consists of approximately GBP 8.0 million ($16.0 million(1)) paid in cash at the deal's completion and a contingent earn-out of up to approximately GBP 1.6 million ($3.2 million(1)) to be determined based on certain agreed upon performance metrics for the fiscal year ending March 31, 2009 that will be paid in cash during fiscal 2009. WNS funded the cash payment made at the deal's completion from existing cash and cash equivalents and expects to fund the earn-out payment also from existing cash and cash equivalents.
WNS will integrate Call 24/7 into WNS Assistance, a division of WNS Global Services Ltd. UK, and a subsidiary of WNS. The deal will enable WNS to extend its market leadership position in accident claims management in the UK. WNS Assistance and Call 24/7 each leverage cost-efficient claims processing, technology and engineering and collision-repair expertise to deliver quality service throughout the accident-management process.
"Call 24/7 is a highly synergistic acquisition and an addition to a proven business model that will strengthen our position as a leading auto claims administrator in the UK market," said Neeraj Bhargava, CEO, WNS Global Services.
"We are excited by the growth prospects of this deal, which we expect to be earnings-per-share accretive within the first year. Call 24/7 is a profitable company, and this acquisition builds upon our strategy of executing targeted acquisitions and expanding our global footprint," Neeraj added.
"WNS Assistance has grown its business with a commitment to high standards of operational excellence and client satisfaction across the motor-claims-handling value chain," said Bernard Donoghue, CEO, WNS Assistance.
"This acquisition demonstrates our commitment to this industry and will enhance our position as a premier provider of accident-management services in the UK, while allowing our clients to benefit from additional economies of scale," added Bernard.
"The joint experience of Call 24/7 and WNS Assistance will create a compelling value proposition for UK insurance firms," said Ian E. Griswould, Chairman and Principal, Call 24/7.
"We look forward to being part of the WNS Assistance team. Our combined organization will continue our traditions of customer service and process excellence, and our claims management clients will benefit from best practices of our firms," added Ian E. Griswould.
In November 2007, WNS Assistance was awarded "Best Accident Management Company" for market leadership in motor claims processing solutions by the Auto Body Professionals Club, a UK automobile trade organization.
(1) Based on the exchange rate as of $2.00 to GBP 1.00 as of April 3, 2008.